No, firstly you cannot upgrade from Windows XP directly to Windows 7. Secondly, upgrade editions are for upgrading only, not new installations.
Therefore for dual booting, you will need to buy a proper version of Windows 7 and install it onto a separate hard drive, or a new partition of your current hard drive.
Make sure you configure dual boot from Windows 7 as it is a lot easier.
Hope this helps and make sense. Good luck!